Financing for Vermont Businesses and Farms

Drinking Water State Revolving Loan Fund

This program provides funds to repair or improve existing privately-owned drinking water systems.


  • Privately-owned community water systems;
  • Privately-owned nonprofit, non-community public water systems; 
  • Borrowers must be reviewed and recommended by the Agency of Natural Resources.

Use of Proceeds

  • Obtain requisite permits, design, plan, construct, repair or improve an existing eligible water system to comply with federal and state standards.

Loan Rates and Terms

  • Term of up to 20 years – up to 30 years for nonprofit community systems serving low-income residents;
  • Repayment deferred for one year from completion of project; 
  • Administrative fees in lieu of interest rates are set for each project based on the average household income of the water system users, and range from 3% to minus 3%.


  • No fees are charged.

Application Process

  • All loans are approved by VEDA and the Agency of Natural Resources;
  • Applicants are advised to discuss their proposed project with the Agency of Natural Resources and VEDA Staff prior to submitting an application; 
  • Applications may be downloaded or obtained from either the VEDA office, or the Agency of Natural Resources.